Propertymark has warned that introducing rent controls could lead to more landlords selling their properties, thereby decreasing the number of homes available for tenants. The property body stated that limiting prices addresses the outcome of a housing shortage rather than the underlying issue itself.
The organisation suggests that increasing housing supply and encouraging investment would be more effective in improving affordability. Propertymark noted that while rent controls might offer short-term protection for some tenants, they do not resolve the fundamental shortage of homes that contributes to high rents.
Evidence cited by Propertymark includes San Francisco's 1994 rent control expansion, which reportedly reduced tenant mobility by 20% and saw affected landlords cut rental supply by 15%. In Berlin, a stricter rent freeze led to a more than 50% drop in weekly listings.
In Scotland, temporary restrictions under the Cost of Living (Tenant Protection) (Scotland) Act 2022 reportedly led to 93% of letting agents observing more landlords wanting to withdraw properties from the private rented sector. Additionally, 83% of agents saw an increase in landlords serving notice to sell.